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Credit Cards for Good Credit
With a good credit rating you will have an opportunity to be eligible for more credit cards. Though there are no set definitions for what determines a good credit history, most banks view lack of delinquent payments, open accounts in good standing, and good credit scores from the major bureaus the eligibility requirements for their offers. Depending on your creditworthiness, you may also be able to obtain lower interest rates and longer duration of introductory terms. Though elite pricing is typically reserved for those with excellent credit, it's possible in some cases to get it as well based on the issuer's assessment of your credit history.
The Difference Between Good and Excellent Credit
Distinguishing between good and excellent credit is actually pretty vague. Most issuers outline the same types of rules that don't really differentiate the two. That much. Here is our analysis. A good credit rating is the gateway to an excellent one. It is a term that is used for those with clean histories that haven't really been established for a long time. Let's use a 24 year old as an example. When this person was 20 they got their first credit card. They used it responsibly for three years and in between got a car loan that remained current. At 24, they were looking for another credit card. What do they qualify for? We would say that this is an example of an individual with good credit. They have been busy building their financial health by making timely payments and establishing accounts that they can afford.
So what is thi difference between good and excellent? The example above outlines a responsible individual's use of loans. Shouldn't this make them candidates for elite cards? Some lenders might say that it does. In all likelihood they should at least be considered for elite pricing for good credit cards. The difference may be in the length of their relationships with other banks. Let's extrapolate this candidate's life for a few years.
So, at 24 they get a credit card for good credit. They make payments get annual limit increases and keep their debt to income ratios and debt to credit line ratios on their existing accounts reasonable. A few years down the road at 27 they want to buy a house and get a mortgage. They qualify for the mortgage and make timesly payments without defaulting on any of their other loans. At 28 they want to upgrade their credit card with either a charge card or new rewards card. They compare offers and determine that the best credit card for their needs is labeled for those with excellent credit. In our opinion they should qualify. They have established relationships with banks for 10 years with credit cards, auto loans, and now a mortgage without making late payments or defaulting. Theoretically, they should check their credit scores from Equifax, TransUnion, and Experian just to make sure that there is nothing wrong in the way of identity theft and that their scores reflect their responsibility accurately.
Of course this is the perfect scenario. Sometimes, actually in most cases, people hit speed bumps along the way and having impeccable financial health isn't always possible. This is why people are so intent and in some cases obsessed with building and raisng their credit scores. There are many more people out there with good credit than superior. This is why there are still several options available to you as a consumer with good credit. There are several balance transfer, rewards, and other deals that surely will adhere to the standards you seek. In fact, most good credit cards have similar pricing structures as those at the next level. The differences usually lie in the size of the intitial credit limits and in some cases personalized services like concierge services that come with the rewards program. Neither of these are real obstacles. By responsible spending you may easily get larger limits and concierge services aren't really useful unless you are traveling to a major city. Even then, the concierge at the hotel you are staying at usually have more pull than the ones from credit card companies.
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